Tax Litigation Law Office of Scott Kauffman
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June 2011 Archives

California couple pleads guilty in offshore bank account case

The federal government has an amnesty program still available for holders of offshore bank accounts. The deadline to come forward and voluntarily disclose secret offshore bank accounts in exchange for reduced penalties is August 31st. In addition, holders of offshore accounts can apply for an extension of ninety days if they are making good faith efforts at meeting the deadline but for some reason feel they may not be able to provide the details needed for the disclosure by August 31st.

California taxpayers should remember charitable deduction letters

Although tax considerations are not the primary reason why most Californians donate to charity, the charitable deduction is heavily relied on by some individuals and businesses to plan how to dispose of unwanted property. Many Orange County taxpayers are dismayed when their charitable deductions are disallowed by the IRS due to a lack of documentation. The frequency of these disallowances makes it important for California taxpayers to remember to "get the letter."

Tax court decision may lead to more Orange County tax deductions

One California woman with a house full of cats recently won a tax court battle that may have implications for taxpayers in Orange County and the rest of the country. The woman is a 59-year-old Oakland resident who lives in a modest 1,500-square-foot house that she used to provide care to about 70 feral cats as a volunteer for "Fix Our Ferals."

Calls for innocent spouse tax relief increase

Most Orange County married couples file joint tax returns. Many married couples also have one partner who is primarily responsible for filing the joint return. This trust can be dangerous because a spouse can be held liable for the tax fraud committed by their partner.

New tax guidelines issued for offshore bank accounts

In our last post we discussed the Internal Revenue Service's Offshore Voluntary Disclosure Initiative (OVDI) which allows Orange County taxpayers to disclose offshore bank accounts without facing criminal penalties. The program does provide for severe financial penalties for certain accounts however. The OVDI extension allows those who are having difficulty meeting the August 31 deadline to apply for more time to comply with all of the requirements of the program.

IRS, "Second Special Voluntary Disclosure Initiative Opens; Those Hiding Assets Offshore Face Aug. 31 deadline," IR-2011-14, Feb. 8, 2011

Orange County residents with undisclosed offshore bank accounts now have more time to disclose information to the IRS. The IRS has offered a 90 day extension to taxpayers in California and the rest of the country who are trying to comply with the current Offshore Voluntary Disclosure Initiative (OVDI) deadline of August 31 in good faith.

Identity theft fueling tax fraud issues according to IRS

Accusations of tax fraud are serious and can have long lasting personal and professional consequences. When the IRS accuses a taxpayer of tax fraud or tax evasion, substantial fines and criminal penalties may be looming. A growing number of Orange County taxpayers may have tax fraud charges filed against them due to no fault of their own, but due to the work of identity thieves.

Online poker players ask to be taxed

Taxes are something that most California and United States citizens don't like to pay and wish they could put a stop to. However, one group of individuals recently took to the nation's capital asking to be taxed. Confused? Well, the group was made up of online poker advocates who are asking that the industry be taxed and regulated rather than considered illegal.